Below is a list with tagged columns and company profiles.

Today's Headlines Infrastructure

  • Indonesia's Preparations Start ASEAN Economic Community 78% Completed

    Economic Minister Hatta Rajasa said that Indonesia's preparations for the implementation of the ASEAN Economic Community (AEC) in late 2015 are currently for 78 percent completed. The AEC aims to enhance regional economic integration among the ASEAN member states. It will transform the ASEAN region into one with free movement of goods, services, investment, and skilled labour, as well as a freer flow of capital. Most important is to develop Indonesia's infrastructure in order to foster connectivity, thus reducing logistics costs.

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  • Gini Ratio of Indonesia May Improve in 2014 on Stable Commodity Prices

    The Gini ratio of Indonesia - the coefficient that measures inequality in income distribution - is expected to improve slightly this year as commodity prices have a stable outlook. Based on data from Statistics Indonesia, the ratio increased significantly since the country's Reformasi period. Between 1999 and 2013, it rose from 0.31 percent to 0.41 percent (a coefficient of zero expresses perfect equality, while one implies perfect inequality). In the last three years (2011- 2013), however, the ratio remained stable at 0.41 percent.

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  • Indonesian Construction Companies Post Strong Growth in 2013

    Four publicly listed - yet state controlled - construction companies recorded a combined 42 percent growth (year on year) in net profit in 2013. The combined net profit of these four companies - Wijaya Karya (Wika), Adhi Karya, Pembangunan Perumahan (PP) and Waskita Karya - totaled IDR 1.74 trillion (USD $146.2 million) last year. These numbers evidence the robust growth that Indonesia's property and infrastructure sectors experienced in 2013 and is expected to continue in 2014.

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  • Tourism in Indonesia is Growing but Infrastructure Investments Needed

    In 2013 Indonesia managed to attract a record number of foreign tourists. Around 8.8 million foreigners entered Indonesia - mostly in Bali - last year, a 9.42 percent increase from 2012, and earning up to USD $10.05 billion in foreign exchange (up 10.23 percent from 2012). Indonesia's tourism sector thus grew at a faster pace in 2013 than the general economy (5.78 percent) and now accounts for 3.8 percent (IDR 347.35 trillion) of the country's gross domestic product (GDP). However, this is still a low figure compared to its regional peers.

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  • General Electric (GE) Seeking to Expand its Business in Indonesia

    General Electric (GE), one of the largest American multinational conglomerates, has already started to show its commitment to invest in Indonesia. Over the course of three years, the company will invest USD $300 million in Southeast Asia's largest economy. CEO of General Electric Indonesia, Handry Satriago, stated that - although the year 2013 was a year full of challenges - the company managed to record revenues worth about USD $1 billion and aims to reach double-digit growth in 2014.

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  • Update on Floods in Jakarta: Water Subsiding but Risks Remain

    On Sunday (26/01), Indonesia's National Disaster Mitigation Agency (BNPB) reported that the floods in Jakarta have led to 23 casualties (due to drowning, electrocution or the impossibility for sick people to reach the hospital) in the last two weeks in Indonesia's capital city, while almost 28,000 people are still displaced from their homes. The good news, however, is that in many parts of Jakarta floodwaters have begun to subside since the end of last week although several neighborhoods remain flooded up to this day.

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  • Floods, LPG and Electricity Tariffs Impact on Indonesia's January Inflation

    Contrary to reports last week, the central bank of Indonesia (Bank Indonesia) expects that the country's January inflation rate may exceed 1 percent due to the disturbance of food products distribution amid severe floods in several cities in Indonesia, particularly Jakarta and Manado. Higher food prices are expected to add 0.3 percent to the monthly inflation rate. Apart from the flood issue, higher LPG as well as electricity tariffs (in the industry sector) will also contribute to January 2014 inflation.

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  • Wika Beton Preparing IPO on the Indonesia Stock Exchange in Q1-2014

    Wika Beton, a subsidiary of majority state-owned construction company Wijaya Karya, will sell over 20 percent of its enlarged capital in an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in the first quarter of 2014. The company, which has appointed Bahana Securities, Mandiri Sekuritas, Danareksa Sekuritas and Sucorinvest Central Gani to act as underwriters for the IPO, expects a 20 percent increase (yoy) in revenue to IDR 2.4 trillion in 2013, and targets a similar growth rate in 2014.

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  • Weak Mining Sector: Production of Heavy Equipment in Indonesia Fell 30%

    In 2013, domestic production of heavy equipment in Indonesia fell 30 percent to 6,127 units from the previous year as commodity prices (such as crude palm oil and coal) were still down. This made Indonesian miners reluctant to ramp up production figures, thus having less need to purchase heavy equipment. According to Pratjojo Dewo, Chairman of the Indonesian Heavy Equipment Association (Hinabi), demand for heavy equipment in Indonesia started falling at the end of 2012 and continued into 2013.

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  • Indonesia Plagued by Flooding; Impact on January Inflation Still Uncertain

    Indonesia's Ministry of Finance is optimistic that the country's inflation rate can be kept at 5.5 percent in 2014 as demand and supply of goods is expected to remain stable although the depreciating rupiah exchange rate and weak state of the country's infrastructure will continue to provide inflationary pressures. Deputy Finance Minister Bambang PS Brodjonegoro expects inflation in January 2014 to be lower than in the same month last year (1.03 percent) but it remains uncertain the extent to which the current floods will impact on the inflation rate.

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Latest Columns Infrastructure

  • Indonesia Posts Trade Surplus in April but Concerns about Economy Rise

    Indonesia posted a higher-than-expected USD $454.4 million trade surplus in April 2015. Previously, analysts predicted to see an April trade surplus of around USD $120 million. However, the USD $454.4 million trade surplus was smaller than the (revised) USD $1 billion trade surplus recorded in March. Moreover, the April surplus (the country’s fifth consecutive trade surplus) is primarily caused by a large drop in imports, signalling that Indonesia’s economic performance remains sluggish at the start of Q2-2015.

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  • Economic Update Indonesia: Stocks, Rupiah, Infrastructure & Economy

    Ahead of the release of Indonesia’s official first quarter GDP growth figure (scheduled to be released in the first week of May), Indonesian stocks fell and the rupiah depreciated (slightly) against the US dollar on the back of weak market sentiments that have plagued Indonesian markets over the past week. Most importantly, weaker-than-expected Q1-2015 corporate earnings reports of listed Indonesian blue chips have made market participants concerned that Indonesia’s economic slowdown has continued into the first quarter of 2015.

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  • Slowing Economic Growth Indonesia to Continue in Q1-2015?

    Within a couple of days Statistics Indonesia (BPS) is scheduled to release Indonesia’s GDP growth figure for the first quarter of 2015. Despite economic growth forecasts for full-year 2015 - both of the Indonesian government and international institutions such as the World Bank, International Monetary Fund (IMF) and Asian Development Bank (ADB) - signalling a rebound from the five-year low of 5.02 percent (y/y) in 2014, various analysts expect to see further slowing economic growth in Q1-2015.

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  • Cement Industry Indonesia in 2015: Overview of the Main Players

    The year 2015 may be a good one for Indonesian cement makers. The Indonesian government under the leadership of Joko Widodo is eager to invest heavily in the country’s infrastructure as this is one of the main bottlenecks that blocks higher economic growth. In the Revised 2015 State Budget the central government set aside IDR 290.3 trillion (USD $22.3 billion) for infrastructure development. Surely, the country's large cement producers - Semen Indonesia, Indocement Tunggal Prakarsa, Holcim Indonesia and Semen Baturaja - will benefit from this.

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  • Bank Indonesia Press Release: BI Rate Maintained at 7.50%

    Indonesia’s central bank (Bank Indonesia) decided to maintain its benchmark interest rate (BI rate) at 7.50 percent, the deposit facility rate at 5.50 percent and lending facility rate at 8.00 percent. This interest rate environment is considered to be in line with the central bank’s ongoing efforts to push the country’s inflation figure within its target of 4±1 percent for 2015 and 2016, as well as to control the country’s current account deficit towards a healthier level at 2.5-3 percent of gross domestic product (GDP) in the medium term.

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  • Government of Indonesia Cancels Construction Cilamaya Seaport

    The government of Indonesia decided to relocate the planned Cilamaya deep seaport project in West Java to a different location (possibly Subang or Indramayu) as the initially proposed location is too closely located to an oil and gas block operated by Pertamina Hulu Energi Offshore North West Java, a subsidiary of state-owned energy company Pertamina. Indonesian Vice President Jusuf Kalla said that it would be dangerous to construct the seaport close to this block as there is a high likelihood that ships will hit oil and gas rigs.

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  • Asian Development Bank: Economy of Indonesia to Grow 5.5% in 2015

    The Asian Development Bank (ADB) released a report today (24/03) in which it discusses recent economic developments in Indonesia. According to the report, Indonesia’s economic growth is projected to accelerate over the two years ahead provided that the Indonesian government continues to implement structural policy reforms. Such reforms - which include the acceleration of infrastructure development, reduction of logistical costs, and enhancing budget implementation - should lead to an improvement of the investment climate.

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  • Manufacturing in Indonesia: Key to Boost Export Performance

    One of the key strategies to improve the economic fundamentals of Indonesia is to restructure and strengthen the country’s exports. This restructuring involves the transformation of Indonesian exports from being dominated by (raw) commodities to manufactured exports by developing downstream industries in Southeast Asia’s largest economy, including import substitution industrialization in order to curb the country’s demand for imported products amid Indonesians’ rising purchasing power.

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  • Economic Update Indonesia: What about Economic Growth in 2015?

    Although Indonesia’s economic growth slowed further in 2014, there is optimism that growth will accelerate in 2015 despite sluggish global economic conditions (curbing Indonesia’s export performance) and Bank Indonesia’s relatively high interest rate environment. Indonesia’s central bank has raised its BI rate several times over the past one and a half years in an effort to combat high inflation (caused by fuel price hikes), curb capital outflows ahead of US monetary tightening, limit the current account deficit and support the rupiah.

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  • Tourism in Indonesia: Record High Number of Foreign Visitor Arrivals

    The total number of foreign tourist arrivals to Indonesia in 2014 was 9.44 million, up 7.19 percent from the preceding year, meaning that the government target of welcoming 9.3 million foreign tourists last year was achieved. As usual, most foreign tourists entered Indonesia through the Ngurah Rai International Airport in Bali, the most famous tourist destination in the world’s largest archipelago. During the whole year of 2014 a total of 3.71 million foreigners spent some time on Bali.

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